Is This the Start of Something Good?

There's good follow-through buying Thursday, but another good close is needed to restore confidence in an uptrend.
Stocks quotes in this article: IWM, ARKK, ELYS, XAIR, UGRO, SKIN, ONDS

The market enjoyed a positive change in mood on Wednesday, and we have some good follow-through buying Thursday.

Breadth is very strong with around 6,500 gainers to 1,300 decliners, but it isn't wild buying. There is a broad strength and slow and steady accumulation, which is much better than some of the speculative spikes we have seen during the recent corrective process.

All the indexes are up around the same amount, with the Russell 2000 ETF (IWM) leading slightly. Growth names are attracting the most interest, and that is reflected in ARK Innovation ETF (ARKK) , which is up 2.3% on breadth of about 10 to 1 positive.

While the pockets of strong momentum are limited as themes such as oil, gas, and cryptos are cooling off, we have some bounce in China and other beaten-up sectors that are coming off lows.

We need another good close today to restore some confidence in an uptrend, but so far, it is looking fairly good.

I've added to some of my favorite names today, such as Elys Game Technology (ELYS) , Beyond Air (XAIR) , urban-gro (UGRO) , The Beauty Health Co. (SKIN) , and Ondas Holdings (ONDS) . I am looking to expand my buying as the day progresses if this price action continues.

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At the time of publication, Rev Shark was long ELYS, XAIR, UGRO, SKIN and ONDS.

TAGS: Indexes | Markets | Small Cap | Stocks | Trading | U.S. Equity

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